Diversity and inclusion in startups are a result of modern-day changes and globalisation. An inclusive startup culture creates various perspectives and benefits that can optimise workflow and create faster efficiency.
Many companies have issues developing a human-centric work culture, especially since our workforce environment stems from factory-like settings from the industrial age. However, it’s the digital age now, and things have changed drastically.
Welcome to the era of the digital age, where diversity and globalisation reign. Innovation and unique changes are required to keep up with the global market and different cultures can create this.
But what is diversity and inclusion? And how do we utilise it to our benefit?
What is Diversity and Inclusion for Startups?
Before we dive into all the details about fostering diversity and inclusion in startups we should first learn what it means for small businesses in the first place.
Nowadays, many large-name companies naturally foster diversity in the workplace. Meanwhile, some companies find it hard to adjust to the times and create significant setbacks in their business growth because of this.
Startups are placed in an advantageous situation where they can begin inclusivity and diversity without having to make big changes or face issues that large-sized companies face. We suggest making it one of the company’s core values to interweave it into their work environment.
By doing so it creates a sense of welcoming for both employees and potential buyers/clients. Failure to incorporate it from the beginning could lead to high employee turnover rates and low engagement with potential customers. After all, relatability is the key to marketing what your product can do for them and if they can’t relate to what you’re saying or doing, how will you gain their attention?
5 Benefits of D&I
Not only is D&I a crucial stepping stone for growth, but it also adds beneficial factors to a brand. Diversity and inclusion in startups have a wide variety of benefits. However, the five ones below are the most beneficial to your business growth and employee collaboration.
Innovation
One of the best parts of business innovation is that it’s unique and brought about through specific triggers, perspectives, and changes within a community. When creating a great product or service you’ll require help to bring it out to its fullest potential.
A positive startup culture where employees can collaborate freely and speak honestly offers a different range of perspectives that could help improve the company’s product or service. Optimisation and growth can come from anywhere, and when collaborating with different types of people you can create your version of a one-of-a-kind process born within your own team’s efforts.
Team Morale
Something that employers often overlook is the need for inclusive leadership. People require morale to continue working effectively and efficiently. Should they be disheartened in their own environment, it’s likely they’ll lose the motivation to continue working.
One of the biggest side effects of being ostracised, unheard, or the odd-man-out could result in high turnover rates, quiet quitting, and even low engagement or hiring. Meanwhile, the implementation of diversity and inclusion in startups can result in the complete opposite.
Decision-making
Another benefit of D&I for startups is improved decision-making. A controlled environment where everyone has the same background of education, same culture, and same perspective does little for growth.
Businesses need to grow to keep up with demand and any changes necessary. To grow, different problem-solving skills and decisions must be made to ensure the process of trial and error to continue enhancement.
Decisions will be made easier if you include those with different backgrounds who can give input that can lead to the perfect solution for growth and management. Since those with different careers, cultures, backgrounds, and personalities can see possible errors you may have missed.
Market Reach
Engagement with possible customers and clients is needed to gain money. You can market your product or brand all over the Internet and still reach a limited number of people if you don’t implement D&I.
Diversity and inclusion in startups aren’t just for the parts where employees and employers participate. They also affect potential consumers. Becoming relatable and gaining the attention of consumers is the goal of marketing. Whether it’s from the Internet, TV commercials, or word-of-mouth.
However, if your brand doesn’t include a diverse group of people you may reach a smaller number than you could have. For example, you created a brand of makeup created for different skin types but have few shades for your foundation.
This could create a gap between those with that particular skin color and the ones who consume your brand. Inclusivity creates the opportunity for your brand to be recognised by all skin types which opens your brand to a wider market reach.
Wider Talent Pool
The final benefit of fostering diversity in startups we’ll discuss is recruitment. There are plenty of talented professionals surrounding you. However, not all of them fit the same type of person commonly found in your office.
Take for example utilising digital recruitment. Being able to hire remote workers from different countries with different cultural backgrounds allows you access to a wider talent pool should the service or talent you’re looking for be high in demand but few in numbers within your area.
5 Challenges Startups Face when Building D&I
Now that we know about the benefits of utilising diversity and inclusion in startups, we should also learn about its challenges. Included with these challenges are ways to solve these issues and how to rise above these potential setbacks.
Challenges with Integration
Inclusivity requires acknowledging all the different requirements and necessities diverse employees may have. This could cause potential setbacks and misunderstandings. Take for example hiring someone with a disability but not having PWD-friendly access within your office or PWD parking privileges.
These things can be solved fairly quickly by acquiring feedback and communicating with your employees. Learning about their needs and keeping an open mind to these progressive changes can quicken the pace of the integration process.
Unconscious Biases
Another challenge when implementing diversity and inclusion in startups is biases. Whether we like it or not, there are stereotypes that are implemented in society that could derail progress in business and employee growth.
This doesn’t mean it’s done on purpose. Many unconscious biases are held by others. These biases can offend others and could create a rough patch for your team’s collaboration.
Correction is the key to preventing further misunderstandings. It’s also important to ensure that your employees are made aware of these biases and how they are unacceptable.
Lack of Access to Diverse Talent Pools
Even if you want to include diversity in your startup it’s possible to find difficulty in finding it. Many male-dominated or female-dominated careers are unfortunately common. So how do you find diverse talent pools when the professionals you’re looking for are dominated by a particular set of people?
Such challenges can be overcome by hiring remote talents. World-class talent is now available thanks to outsourcing and freelance workers. By doing so, you gain a wider range of diverse talents specialising in the ones you require for your business.
Communication Issues
Let’s say you found some diverse talents to include in your business. The next hurdle you’ll encounter is also the most common one: communication issues. Diversity and inclusion in startups also require companies and their employees to be mindful of how they communicate.
Different upbringings and cultures create different ways of speaking. As a result, our way of talking is bent in a way that suits the environment we grew up in. This means that something humorous to one person could be offensive to the other.
Another example is when specific terms could mean an entirely different thing to another culture. The best way to deal with this is to have transparent and open communication while being sensitive to the boundaries each of us has.
Professional Etiquette
While many companies tend to work seamlessly in their work culture, having a diverse group means having different ideas of professionalism based on their previous experiences. A great example is the Australian work culture, which instills strict time in/ time out schedules and privacy with strict and timed schedules.
Meanwhile, Filipino work culture tends to be hardworking to the point of overworking and often extremely sociable. Be mindful of the different upbringings each employee has and respect the boundaries they have set up for a more collaborative and optimised workforce.
Practical Tips to Implement Diversity and Inclusion in Startups
Now that we know all about the advantages and disadvantages of diversity and inclusion, it’s time to learn how to implement it in your startup. Here are some practical tips you can use to your advantage to give you a boost on your business work culture. 
Develop a Clear D&I Policy.
Every instruction begins with development or gathering. The same can be said when implementing D&I strategies for startups. You must create your D&I policy first before making any necessary changes to your company’s work culture.
Not only does this make the rules and regulations clearer to team members, but it also gives clients and potential employees a grasp of your company’s understanding of diversity and inclusion from the get-go.
Conduct Bias Training for Leadership and Team Members
Diversity and inclusion in startups have challenges like unconscious bias that can be prevented before the worst of the worst comes. Bias training for leads and team members gives them a clear insight into what is a stereotype and how to remain open-minded to the diverse employees planning on collaborating with them.
Failure to conduct bias training could lead to miscommunication, ostracised employees, and high turnover rates due to misunderstandings. Once you have your D&I policy it’s best to train your current employees for the incoming new workers.
Implement Diverse Hiring Practices
Recruitment carries a big load in terms of supporting diversity and inclusion. Ensure that your recruitment team understands their bias training and begins recruiting for a wide variety of talents.
Recruitment teams can use tools for hiring that can maintain anonymity to ensure that they hire talents based on their skill set and not on unconscious biases as well. Remember to ensure that your company is open to inclusivity and that your brand’s core values are highlighted during the hiring process.
Foster an Inclusive Work Environment
Diversity and inclusion in startups can only be a positive environment if everyone sets an example for themselves. Leaders and employees must work together to create the perfect inclusive work environment alongside your policies and hiring practices.
Not only does this make your employees feel safer and secure with your work culture, but it also improves employee engagement while enhancing morale.
Measure Progress through Metrics and Feedback
Keep in mind that hiring and spreading awareness isn’t the only thing to keep an eye on. Continuous monitoring of progress is possible by hearing about the feedback diverse employees have for your work culture.
By doing so, assuring a healthy work-life for everyone is possible once any concerns are cared for immediately. Should there be disappointing results in the measurements, it’s time to sit down with one another and help improve the workflow into a more optimised version of itself.
Partner with Organisations that Promote Diversity
Promoting your brand’s core values gains the attention of all possible employees and consumers. Even more so if it’s an event partnered with organisations that have a better grasp of what diverse employees require.
Diversity and inclusion in startups must continuously keep their brand assured of its stand towards it and their goals for hiring to align its company amongst the diverse ones. One of the many great ways of promoting your company’s openness to diversity is to partner up with organisations that do the same.
Not only does this partnership tighten your brand’s reputation as a diverse team, but it can also give you access to talents who have the skills you need which are connected to these organisations.
Celebrate Cultural Diversity through Events and Storytelling
Last but certainly not least, it’s important to celebrate diversity through events and months specifically assigned to them (like Pride Month) to keep your brand’s reputation and entice future employees to apply to your brand.
Your current employees shouldn’t also be left hanging. Take pride in their backgrounds and differences by utilising their perspectives and featuring them in articles, posts, or newsletters when they achieve something incredible.
Conclusion
Diversity and inclusion in startups create the most positive experience for both your employees and your business growth if implemented correctly. While there are challenges your company will face when trying to implement D&I, the benefits outweigh these challenges.
Enhance your brand’s perspectives and include a variety of talents today! Contact Flexilabs to learn how we can help you cultivate your own positive and inclusive environment.